Author: Fiona Craig

The Bank of England is examining whether traders at Barclays (LSE:BARC) classified derivatives linked to illiquid private credit loans in a way that reduced the bank’s regulatory capital requirements, according to a Financial Times report published on Monday.

The newspaper, citing people familiar with the matter, said the Bank of England’s Prudential Regulation Authority (PRA) received a complaint earlier this year concerning the treatment of certain private credit-related transactions.

The reported examination focuses on total return swaps and whether the classification of these instruments appropriately reflected the characteristics of the underlying loans.

The Financial Times did not establish that Barclays had breached regulatory requirements, and no regulatory findings were disclosed in the supplied report.

PRA Examines Treatment of Total Return Swaps

According to the Financial Times, the complaint concerned Barclays’ classification of derivatives associated with private credit financing arrangements.

The transactions involved total return swaps, financial instruments that allow banks to provide financing linked to underlying assets while transferring their economic performance to counterparties in exchange for a fee.

Such arrangements can be used to provide financing to private credit funds.

The report said Barclays traders maintained that back-to-back swap arrangements hedging the bank’s exposure meant the positions could be treated as tradable instruments.

However, the underlying private credit loans were illiquid, raising questions about whether the associated derivatives had been classified appropriately for regulatory capital purposes.

The PRA is reportedly examining the matter following the complaint received earlier in 2026.

Asset Classification Affects Bank Capital Requirements

The distinction between trading book and banking book positions is relevant to the amount of regulatory capital banks must maintain against potential losses.

Trading book positions generally include instruments held for trading purposes, while banking book positions typically include longer-term lending exposures and other assets not held for trading.

Different regulatory capital treatments apply depending on the nature and classification of the exposure.

The Financial Times reported that the examination concerns whether the use of derivatives linked to illiquid loans resulted in a capital treatment that did not adequately reflect the underlying risks.

The PRA has previously warned banks about arrangements that repackage illiquid assets into instruments classified as tradable for the purpose of reducing capital requirements.

The reported examination does not, by itself, establish that Barclays applied an incorrect classification or failed to meet its regulatory obligations.

Barclays Declines to Comment on Regulatory Interactions

According to the Financial Times, Barclays said it takes its regulatory responsibilities seriously but does not comment on its interactions with regulators.

The bank did not provide a detailed response to the specific matters described in the report.

The supplied information does not indicate whether the PRA has reached any conclusions, requested changes to Barclays’ capital treatment or initiated formal enforcement proceedings.

It also does not quantify the value of the transactions under examination or any potential effect on the bank’s regulatory capital position.

Private Credit Market Faces Increased Regulatory Attention

The reported examination comes amid wider regulatory scrutiny of the private credit market, which the source estimates at approximately $2 trillion.

Private credit involves lending arrangements outside traditional publicly traded debt markets, often involving loans that are less liquid than listed bonds or other marketable securities.

Banks can participate in the sector through financing arrangements, derivatives and other services provided to private credit investment funds.

Regulators have been examining the risks associated with these relationships, including the treatment of exposures and the adequacy of capital held against potential losses.

The Barclays matter, as reported by the Financial Times, concerns the classification of specific derivative arrangements rather than a disclosed finding about the bank’s wider private credit activities.

Further information would be required to determine whether the PRA’s examination results in any regulatory action or changes to the treatment of the transactions concerned.

Predator Oil & Gas Holdings Plc (LSE:PRD) has announced a conditional placing to raise £2.5 million before expenses, with proceeds allocated to production development in Trinidad, exploration activities in Morocco and regulatory work relating to its Corrib South project offshore Ireland.

The Jersey-based oil and gas company has conditionally placed 166,666,667 new ordinary shares at 1.5 pence per share. The fundraising was arranged by joint brokers AlbR Capital Limited and Crest Corporate Broking.

The company said the financing would support planned production expansion at Snowcap-3, further development of the Goudron field and additional exploration and testing activities in Morocco.

Trinidad Production Development

Predator intends to use part of the proceeds to expand production facilities at Snowcap-3, which has received regulatory approval and is scheduled to commence operations in November 2026.

The planned expenditure includes £200,000 for civil engineering works, expansion of the production facilities and provision for retaining the drilling rig at the site for potential additional development wells.

A further £350,000 has been allocated to increasing production capacity, including facilities for wax treatment, while £250,000 is earmarked for rehabilitating storage tanks at the sales point.

The company has also budgeted £500,000 for additional drilling-related inventory, freight and services costs, which it attributed to inflation associated with the Middle East conflict.

At the Goudron field, Predator reported production rates of 37 barrels of oil per day from well GY 664 and 18 barrels per day from GY 665 following heavy workover operations.

The company has allocated £240,000 to potentially fund additional perforating and flow testing across further reservoirs in two planned Goudron development wells.

These wells are expected to be drilled by NABI Construction under an existing Master Services Agreement. Predator said retaining a larger proportion of the resulting production could contribute towards funding a potential gas-to-power project using stranded gas from Goudron to supply data centres.

Morocco Exploration and Partnership Discussions

In Morocco, Predator is continuing its exploration and development activities in the Guercif Basin, alongside discussions with potential local partners.

The company expects final results from perforating and testing operations at MOU-6 within approximately two weeks.

Predator said it intends to advance partnership negotiations following the release of those results, with discussions covering potential gas development, upstream exploration and helium opportunities.

The company has drilled six wells in the Guercif Basin and plans to use information gathered from these operations to assess further exploration opportunities.

A total of £500,000 has been allocated to additional MOU-6 drilling and well-testing costs, including increased expenditure on equipment, freight, services, logging and testing.

Predator has also earmarked £175,000 for planning and initial procurement activities associated with deepening the MOU-5 well by at least 640 metres.

The proposed programme is intended to investigate helium potentially associated with thermogenic gas beneath Triassic salt formations. The company also plans to assess the potential for natural gas storage within the anticipated salt interval.

Separately, Predator intends to commission a study examining unconventional biogenic gas resources across an area of up to 120 square kilometres in the Guercif Basin.

The company has allocated £100,000 to this work and plans to collaborate with Romanian company Geo Line Solution S.R.L., which has experience in geological formations and gas production in Romania and western Ukraine.

The study will examine potential geological comparisons and production characteristics to inform further evaluation of the Moroccan acreage.

Predator cited historical biogenic gas production in western Ukraine as geological context, although the existence and commercial potential of comparable resources in Guercif remain subject to evaluation.

Corrib South Regulatory Process

Predator has allocated £10,000 to support regulatory engagement relating to its proposed Corrib South successor authorisation offshore Ireland.

The company said discussions with regulators at the Department of Climate, Communications and the Environment (DCCE) include an ongoing financial review supported by production forecasts from its Trinidad operations.

The potential award of a successor authorisation remains subject to the relevant regulatory process.

Predator has identified Corrib South as a potential source of additional indigenous gas supply that could utilise existing infrastructure.

Placing Terms and Share Capital

The placing is conditional on the new shares being admitted to the Equity Shares (transition) category of the Official List and to trading on the London Stock Exchange’s main market.

Admission is expected on or around 20 October 2026.

The new shares will rank equally with existing ordinary shares.

Participants in the fundraising will receive one warrant for each placing share subscribed for. These warrants will be exercisable at 2.5 pence per share for 24 months.

In addition, the company will issue 11,666,666 broker warrants exercisable at the placing price of 1.5 pence per share, with a 36-month expiry period.

Following admission, Predator expects to have 1,071,104,857 ordinary shares in issue, each carrying one voting right. The company will hold no shares in treasury.

The fundraising will therefore increase the company’s issued share capital, while the accompanying warrants provide for the potential issuance of further shares if exercised.

Predator also confirmed the appointment of Crest Corporate Broking, a trading name of Cal Investments, as joint broker with immediate effect, alongside AlbR Capital Limited.

Management Commentary

Dr. Stephen Boldy, Non-executive Chairman of Predator Oil & Gas Holdings Plc, said the placing was intended to support production development and the company’s broader financing requirements.

He attributed higher drilling and testing costs to global inflation associated with the Middle East conflict and said maintaining sufficient capital was important as Predator sought to expand production and progress its Moroccan and Irish projects.

The company expects its near-term operational programme to include the start of Snowcap-3 activities in November, publication of MOU-6 testing results and continued planning for the MOU-5 deepening programme.

Completion of the placing remains conditional on admission of the new ordinary shares.

Primary Health Properties PLC (LSE:PHP) has agreed to establish a 50:50 strategic joint venture with global investment firm GIC, initially comprising 27 private hospitals from its existing property portfolio valued at approximately £700 million.

Under the agreement, Primary Health Properties (PHP) will retain a 50% interest in the hospital assets and continue to provide property and asset management services to the joint venture.

The transaction is expected to generate approximately £500 million in net cash proceeds for PHP, which the company intends to use to repay debt associated with its acquisition of Assura and other variable-rate borrowing.

Following the proposed debt repayments, PHP expects group net debt to decline to approximately £2.9 billion.

Joint Venture to Include 27 Private Hospitals

The new joint venture will focus on investment in private hospital infrastructure, with an initial portfolio comprising 27 hospitals currently owned by PHP.

The properties have an aggregate valuation of approximately £700 million.

GIC and PHP will each hold a 50% interest in the venture, providing both parties with exposure to the hospital portfolio.

PHP will remain responsible for property and asset management, generating management fee income alongside its retained ownership interest.

The arrangement will allow PHP to continue participating in the financial performance of the assets while sharing ownership with an institutional investment partner.

The agreement also establishes a platform for potential further investment in private hospital properties.

Approximately £500 Million in Net Cash Proceeds Expected

PHP expects the transaction to generate net cash proceeds of around £500 million.

The company intends to apply these funds towards reducing variable-rate debt, including borrowings incurred in connection with its acquisition of Assura.

The planned repayments include the group’s bridging facility and a £266 million term loan associated with that transaction.

By using the proceeds to repay borrowings, PHP expects to reduce its overall debt balance and exposure to variable interest rates.

The company has identified debt reduction as a principal financial objective of the joint venture transaction.

Net Debt Expected to Fall to £2.9 Billion

Following the proposed application of the proceeds, PHP expects its net debt to decrease to approximately £2.9 billion.

The reduction is also expected to improve the group’s leverage metrics.

PHP said the transaction supports its objective of maintaining a strong investment-grade credit rating.

The anticipated reduction in variable-rate borrowings would also change the composition of the group’s financing arrangements.

The final financial impact will depend on completion of the transaction and the application of the proceeds as planned.

Government-Backed Income Proportion Expected to Exceed 80%

PHP expects the joint venture transaction to increase the proportion of government-backed income across its retained property portfolio to more than 80%.

The change reflects the transfer of a 50% interest in the private hospital assets to the joint venture and the resulting adjustment to the group’s property ownership structure.

PHP’s wider portfolio includes healthcare properties in the United Kingdom and Ireland, with a substantial proportion of rental income supported by government-related healthcare occupiers.

The company focuses on modern healthcare facilities intended to support the delivery of medical services.

Following its combination with Assura in 2025, PHP manages a healthcare property portfolio valued at approximately £6 billion.

PHP to Retain Asset Management Role

In addition to retaining a 50% equity interest, PHP will act as property and asset manager for the hospital joint venture.

This role will provide a fee-based income stream associated with the management of the portfolio.

The arrangement represents an extension of PHP’s existing property management activities through a jointly owned investment structure.

The company will continue to manage its wider healthcare real estate portfolio while participating in the hospital joint venture.

The agreement with GIC also provides a framework for potential future investment in the private hospital sector, although no additional acquisitions have been specified in the supplied announcement.

Transaction Supports Debt Reduction Strategy

The proposed joint venture forms part of PHP’s financial strategy following its acquisition of Assura.

The company expects to receive approximately £500 million in net cash proceeds, reduce net debt to around £2.9 billion and increase the share of government-backed income in its portfolio to more than 80%.

PHP will retain a 50% interest in the initial £700 million hospital portfolio and continue to receive income from its asset management responsibilities.

The supplied update does not specify a completion date or detail any outstanding transaction conditions.

The anticipated financial benefits remain dependent on completion of the joint venture and the planned debt repayments.

Kistos Holdings plc (LSE:KIST) has maintained its full-year 2026 production guidance of 19,000 to 21,000 barrels of oil equivalent per day (boepd), reporting year-to-date pro forma production of approximately 20,000 boepd for the nine months ended 30 September 2026.

Third-quarter production averaged approximately 18,500 boepd, reflecting a planned turnaround of the Jotun floating production, storage and offloading (FPSO) vessel in Norway.

The company also completed its acquisition of Oman Blocks 3 and 4 in September, with the acquisition of Block 9 expected to follow during the fourth quarter.

On an unaudited pro forma basis, Kistos estimated EBITDA of approximately $280 million for the first nine months of 2026, including around $75 million attributable to its Omani operations.

Adjusted net debt increased to $101 million following capital expenditure during the summer and the payment associated with the Oman acquisition.

Third-Quarter Production Averages 18,500 Boepd

Kistos reported pro forma production of approximately 20,000 boepd for the nine months to 30 September 2026.

Output during the third quarter averaged around 18,500 boepd, with the reduction partly attributable to scheduled maintenance on the Jotun FPSO in Norway.

Despite the temporary impact on production, Kistos maintained its full-year guidance range of 19,000 to 21,000 boepd.

The company reported production efficiency exceeding 90% across its principal UK and Dutch assets during the period.

In Norway, additional wells were brought into production, contributing to activity across the group’s existing asset base.

The operational update reflects production across Kistos’ interests in the UK, the Netherlands, Norway and Oman, including the acquired Omani assets on a pro forma basis.

Oman Blocks 3 and 4 Acquisition Completed in September

Kistos completed the acquisition of Oman Blocks 3 and 4 during September, adding producing oil assets to its international portfolio.

The company also expects to complete its acquisition of Oman Block 9 in the fourth quarter of 2026.

The Block 9 transaction remains outstanding, and its expected completion is subject to the relevant transaction arrangements.

Kistos said revised exploration and production sharing agreement (EPSA) terms in Oman have supported an increase in drilling activity.

The company is incorporating the Omani assets into its wider production and development portfolio as it expands its operations beyond its established European markets.

The acquisitions form part of Kistos’ strategy of developing existing assets and pursuing additional oil and gas interests through corporate transactions.

Additional Balder Area Interest Agreed With Vår Energi

Following the end of the reporting period, Kistos agreed to acquire an additional 10% interest in the Balder Area licences in Norway from Vår Energi.

The proposed acquisition would increase Kistos’ participation in the Norwegian assets, subject to regulatory approval.

The Balder Area forms part of the company’s existing Norwegian operations, where production activities include wells connected to the Jotun FPSO.

The additional interest has not yet transferred, and completion remains conditional on the necessary regulatory consent.

Kistos has not provided a confirmed completion date for the transaction in the supplied update.

Unaudited Pro Forma EBITDA Estimated at $280 Million

Kistos estimated unaudited pro forma EBITDA of approximately $280 million for the nine months ended 30 September 2026.

The figure includes an estimated contribution of around $75 million from the Omani assets.

The company reported that realised oil and gas prices supported earnings during the period.

The EBITDA figures are presented on a pro forma basis and are unaudited, reflecting the inclusion of assets acquired during the year.

Kistos also highlighted the pricing arrangements associated with Omani oil offtake agreements.

According to the company, these arrangements incorporate a lag between prevailing market prices and realised sales prices, which could moderate the immediate effect of changes in oil prices on revenue.

The impact of this pricing structure will depend on future commodity price movements and the terms of the relevant sales arrangements.

Adjusted Net Debt Rises to $101 Million

Kistos reported adjusted net debt of $101 million at the end of September.

The increase reflected capital expenditure during the summer and the payment associated with the acquisition of Oman Blocks 3 and 4.

The company continues to allocate capital towards production operations, development activities and acquisitions across its portfolio.

Its financial position will be influenced by operating cash generation, commodity prices, capital expenditure and the completion of outstanding transactions.

Full-Year Guidance Reaffirmed

Kistos maintained its 2026 production guidance of 19,000 to 21,000 boepd following the third-quarter operational update.

The company expects to continue production activities across its European and Omani assets while progressing the planned acquisition of Block 9 and the additional Balder Area interest.

The Block 9 acquisition is expected to complete during the fourth quarter, while the Balder transaction remains subject to regulatory approval.

Kistos enters the final quarter of 2026 with year-to-date pro forma production of approximately 20,000 boepd, estimated unaudited pro forma EBITDA of $280 million and adjusted net debt of $101 million.

LondonMetric Property Plc (LSE:LMP) reported an increase of more than 8% in net rental income to approximately £240 million for the six months ended 30 September 2026, supported by acquisitions, rent reviews and asset management activity.

The UK-listed real estate investment trust (REIT) recorded 5.8% growth in like-for-like annualised rental income, while rent collection reached 99.3% during the period.

The company also announced a further increase in its dividend, continuing its policy of progressive shareholder distributions.

LondonMetric said earnings remained in line with analysts’ expectations, supported by income from its existing property portfolio and the contribution of acquisitions, including Urban Logistics REIT and Picton.

The group continued to adjust its property holdings through £185 million of disposals and £424 million of acquisitions, primarily involving logistics and long-let convenience assets.

Net Rental Income Exceeds £240 Million

LondonMetric reported net rental income of approximately £240 million for the first half of its financial year, representing growth of more than 8% compared with the corresponding period.

Like-for-like annualised rental income increased by 5.8%, reflecting rental growth within the existing portfolio.

The company maintained a rent collection rate of 99.3%, supported by its portfolio of income-producing properties.

LondonMetric attributed its rental income performance to high occupancy, long lease terms and rent reviews, alongside contributions from previously acquired assets.

The integration of Urban Logistics REIT, acquired in the previous year, and the Picton takeover contributed to the group’s expanded property portfolio.

The company said its earnings performance remained consistent with analysts’ expectations for the period.

£424 Million of Acquisitions and £185 Million of Disposals

LondonMetric continued its programme of portfolio recycling during the six months to September.

The company completed £424 million of property acquisitions, concentrating investment on logistics and long-let convenience assets.

These purchases were accompanied by £185 million of disposals involving properties identified as non-core to the group’s portfolio strategy.

The disposals were completed at book value, according to the company.

The transactions form part of LondonMetric’s approach to reallocating capital towards properties that meet its investment criteria, including lease duration, rental income characteristics and occupier demand.

Further acquisitions and lettings remained under offer at the end of the reporting period.

Asset Management Generates £11.8 Million in Additional Annual Rent

LondonMetric reported that asset management initiatives generated £11.8 million of additional annual rental income.

These activities included rent reviews and other measures intended to increase income from existing properties.

The company continues to manage its portfolio through lease arrangements, rental adjustments and selective investment activity.

Its property holdings are concentrated in logistics, healthcare, convenience, entertainment and leisure sectors.

The group operates a triple net lease investment model, under which tenants typically assume responsibility for specified property operating costs, including maintenance, insurance and taxes, depending on the relevant lease terms.

This structure forms part of LondonMetric’s focus on long-term contracted rental income.

Portfolio Valuation Remains Stable

LondonMetric reported that its property portfolio valuation remained broadly unchanged during the period.

The company also highlighted higher interest rate swap costs, reflecting the financing environment affecting its operations.

Despite these costs, the group maintained its portfolio valuation while continuing to complete acquisitions and disposals.

LondonMetric’s property platform is valued at approximately £8 billion and includes assets across several commercial property sectors.

The company continues to focus on properties with long lease terms and established rental income streams.

Dividend Increased as Earnings Remain in Line With Expectations

LondonMetric announced a further increase in its dividend for the reporting period, extending its record of progressive distributions.

The company said its earnings remained in line with analysts’ expectations and indicated that its prospective dividend was fully covered.

The supplied update does not specify the latest dividend per share or the percentage increase from the previous period.

LondonMetric continues to pursue income growth through rent reviews, asset management and investment in long-let properties.

The company ended the six-month period with approximately £240 million in net rental income, 5.8% like-for-like annualised rental growth and 99.3% rent collection.

Its near-term activities include completing further lettings and potential acquisitions while continuing to manage its existing property portfolio and financing arrangements.

Invinity Energy Systems plc (LSE:IES) has announced plans to raise at least £20 million through a combination of a share subscription, institutional placing and retail offer, with all new ordinary shares priced at 10 pence each.

The AIM-listed manufacturer of vanadium flow battery systems has entered an AIM Capital Access Window to facilitate the proposed fundraising process, resulting in a temporary suspension of trading in its ordinary shares.

The company said the proposed capital raising is intended to support its financial position and further commercial development in the long-duration energy storage market.

The fundraising remains subject to completion of the relevant processes and shareholder approval.

Proposed Fundraise Combines Subscription, Placing and Retail Offer

Invinity intends to raise a minimum of £20 million through three components: a subscription for new ordinary shares, an institutional placing and an offer to retail investors.

All three components are proposed at an issue price of 10 pence per new ordinary share.

At that price, raising £20 million would require the issuance of at least 200 million new ordinary shares, before any associated expenses.

The final number of shares issued will depend on the total amount raised through the proposed transaction.

The company has not provided a final allocation between the subscription, institutional placing and retail offer in the supplied announcement.

The fundraising is intended to provide additional capital for Invinity’s operations and commercial development activities.

AIM Capital Access Window Introduced During Fundraising

Invinity has entered an AIM Capital Access Window in connection with the proposed share issue.

Under this arrangement, trading in the company’s ordinary shares has been temporarily suspended while the fundraising process is undertaken.

The suspension is intended to facilitate the capital raising and associated shareholder approval process.

Trading is expected to remain suspended until the relevant fundraising arrangements have been concluded and the required shareholder approval has been obtained.

The company has not specified a confirmed date for the resumption of trading.

Completion of the proposed fundraise remains conditional, and the announcement does not establish that the targeted proceeds have been secured.

Endurium Batteries Target Long-Duration Energy Storage

Invinity develops and manufactures vanadium flow battery systems designed for long-duration electricity storage.

Its Endurium product range is intended for applications requiring repeated charging and discharging over extended operating periods.

The systems are designed to support electricity networks, renewable energy projects and commercial and industrial customers requiring energy storage capacity.

Unlike lithium-ion batteries, vanadium flow batteries use liquid electrolytes containing vanadium to store energy.

Invinity markets its technology as a non-flammable storage alternative designed for high-throughput applications and extended service life.

The company’s Endurium systems are engineered for an operating life of approximately 30 years.

Manufacturing Operations in the UK and Canada

Invinity operates battery manufacturing facilities in the United Kingdom and Canada, supporting the production and development of its energy storage systems.

The company supplies technology intended to help electricity customers manage fluctuations in renewable generation and provide stored power when required.

Its systems have been deployed in multiple markets, with the company reporting that its installed technology has delivered gigawatt-hours of electricity to customers worldwide.

Invinity’s commercial activities focus on utility-scale storage, renewable energy integration and commercial and industrial applications.

The proposed fundraising forms part of its efforts to support these operations and pursue further deployment opportunities.

Fundraising Remains Subject to Shareholder Approval

The proposed transaction would provide Invinity with at least £20 million in gross proceeds if completed at the stated minimum amount.

However, the final fundraising outcome remains subject to investor participation, completion of the relevant transaction arrangements and shareholder approval.

The issuance of new ordinary shares would also increase the company’s share capital, resulting in dilution for existing shareholders who do not participate.

Invinity has not disclosed a confirmed timetable for completion or the resumption of trading in the supplied update.

The company will continue progressing the proposed fundraising while its shares remain suspended under the AIM Capital Access Window.

Petro Matad Limited (LSE:MATD) has announced that its SunSteppe Power subsidiary has signed a cooperation memorandum of understanding (MoU) with Saudi-listed energy developer Acwa to pursue a renewable electricity export project connecting Mongolia and China.

The proposed first phase targets 4.5 gigawatts (GW) of renewable energy generation capacity, supported by 500 megawatt-hours (MWh) of battery energy storage.

The agreement forms part of Petro Matad’s expansion into renewable energy through its 50%-owned SunSteppe Renewable Energy joint venture, alongside its existing oil exploration and production operations in Mongolia.

Separately, SunSteppe has identified a portfolio of renewable energy projects totalling 570 megawatts (MW), with potential development premia estimated at approximately $20 million to $30 million between 2027 and 2029.

Acwa Agreement Targets Cross-Border Electricity Exports

Under the cooperation MoU, SunSteppe Power and Acwa intend to explore the development of renewable electricity generation in Mongolia for export to China.

The initial phase of the proposed initiative would involve 4.5 GW of generation capacity and 500 MWh of battery storage.

The project is intended to utilise Mongolia’s solar and wind resources and its geographical proximity to China to support cross-border electricity supply.

The cooperation arrangement represents an early stage in the proposed development. The supplied announcement does not specify a construction timetable, investment commitment or agreed electricity offtake arrangements.

Further development would require the parties to progress technical, commercial and regulatory matters associated with renewable generation and cross-border power transmission.

SunSteppe Renewable Energy Portfolio Reaches 570 MW

SunSteppe Renewable Energy has assembled a portfolio of four renewable energy projects with a combined planned capacity of 570 MW.

The portfolio comprises three solar generation projects incorporating battery storage and one hybrid project combining wind, solar and battery technologies.

The joint venture estimates that these projects could generate development premia of approximately $20 million to $30 million over the period from 2027 to 2029.

These amounts represent potential future development proceeds rather than contracted revenue or realised earnings.

The portfolio forms part of SunSteppe’s strategy to develop renewable energy assets in Mongolia, including projects that could be advanced with external development or investment partners.

Additional 124 MW of Projects Under Consideration

Beyond its existing 570 MW portfolio, SunSteppe has identified a further 124 MW of potential renewable energy development opportunities.

These include a green hydrogen project associated with OT, which has access to Japanese grant funding.

The company is assessing these projects as potential additions to its renewable energy development pipeline.

SunSteppe has also identified off-grid electricity supply to Mongolia’s mining sector as a potential market exceeding 500 MW.

Mining operations in Mongolia represent a prospective customer base for renewable generation and storage systems, including facilities operating away from established electricity networks.

The identified market opportunity does not represent contracted generating capacity, and no associated customer agreements or revenue figures were disclosed in the supplied update.

Renewable Energy Activities Complement Mongolian Oil Operations

Petro Matad is an AIM-listed exploration and production company with oil interests in Mongolia.

The group holds 100% working interests and operatorship in the Matad Block XX and Borzon Block VII production sharing contracts.

Its 50% ownership of SunSteppe Renewable Energy provides exposure to renewable power development alongside these hydrocarbon activities.

Through SunSteppe, the company is pursuing utility-scale solar, wind and battery storage projects, as well as opportunities in green hydrogen and electricity supply for industrial customers.

The cooperation agreement with Acwa introduces a potential cross-border export initiative alongside the joint venture’s existing domestic project portfolio.

Development Timetables and Commercial Agreements Remain Outstanding

The proposed 4.5 GW renewable electricity export initiative remains at the cooperation MoU stage, with further agreements and development work required before implementation.

SunSteppe’s existing 570 MW project portfolio and additional 124 MW pipeline also remain subject to their respective development processes.

Petro Matad has identified potential development premia of $20 million to $30 million between 2027 and 2029, although the timing and realisation of those proceeds will depend on project progress and commercial arrangements.

The company will continue pursuing its renewable energy development activities through SunSteppe while maintaining its existing oil interests in Mongolia.